Deal consists of two types of units with three-year attached warrants
By Devika Patel
Knoxville, Tenn., March 29 - North American Gem Inc. said it plans a C$1.05 million non-brokered private placement of units.
The company will sell 14 million units of one common share and one warrant at C$0.075 per unit. Up to 4 million units will be non-flow-through units of one common share and one warrant; the remaining 10 million units will be flow-through units of one flow-through common share and one half-share warrant.
The warrants are each exercisable for three years. The strike price in the first year, C$0.10, reflects an 11.11% premium to the March 28 closing share price of C$0.09. The strike price in the second year, C$0.12, reflects a 33.33% premium to the March 28 closing share price. The strike price in the third year, C$0.15, reflects a 66.67% premium to the March 28 closing share price.
Proceeds will be used for general working capital and exploration.
Based in Vancouver, B.C., North American Gem is a mineral resource exploration company.
| Issuer: | North American Gem Inc.
|
| Issue: | Non-flow-through units of one common share and one warrant, flow-through units of one flow-through common share and one half-share warrant.
|
| Amount: | C$1.05 million
|
| Units: | 14 million
|
| Price: | C$0.075
|
| Warrant expiration: | Three years
|
| Warrant strike prices: | C$0.10 in the first year, C$0.12 in the second year, C$0.15 in the third year
|
| Agent: | Non-brokered
|
| Pricing date: | March 29
|
| Stock symbol: | TSX Venture: NAG
|
| Stock price: | C$0.10 at close March 29
|
| Market capitalization: | C$16.6 million
|
|
|
| Non-flow-through units
|
| Amount: | C$300,000
|
| Units: | 4 million
|
| Warrants: | One warrant per unit
|
|
|
| Flow-through units
|
| Amount: | C$750,000
|
| Units: | 10 million
|
| Warrants: | One half-share warrant per unit
|
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